Adani suspends work on petrochemical project amid investor scrutiny

Bengaluru — Adani Group has suspended work on a 349-billion rupee petrochemical project at Mundra in India’s western Gujarat state as it focuses on consolidating operations and addressing investor concerns after the Hindenburg short-seller report, according to the Press Trust of India.

The report was carried in the Economic Times on Sunday.

The group has asked vendors and suppliers to “suspend all activities of the scope of work and performance of all obligations” for Mundra Petrochem’s Green PVC project “till further notice”, the newspaper reported, citing mails seen by PTI.

Adani Group did not immediately respond to a request for a comment.

On January 24, Hindenburg Research alleged stock manipulation and improper use of tax havens, and flagged concerns over debt levels at the company, which Adani has denied.

India’s top court has since asked the Securities and Exchange Board of India to investigate Adani Group for any lapses related to public shareholding norms or regulatory disclosures.

Reuters